And he fell sterling to its lowest level in two months after weaker-than-expected British inflation data gave way to… Central Bank of England To cut interest rates at a greater pace, the euro also reached its lowest level in ten weeks before the meeting European Central Bank.
With the US presidential elections approaching, investors’ focus has shifted to the electoral competition in addition to the course of monetary policy in US.
Price movements
The dollar index, which measures the performance of the US currency against six major currencies, rose by about 0.2 percent to 103.44 points, after recording a 10-week high of 103.47 points.
The euro also fell 0.2 percent to $1.0876, after falling earlier in the session to an 11-week low at $1.0871.
Investors will closely follow the European Central Bank meeting tomorrow, Thursday.
The British pound was one of the most moving major currencies, falling 0.5 percent to $1.3008.
The British currency fell below the $1.30 level for the first time since August 20, after data showed that the annual consumer price inflation rate fell to 1.7 percent in September from 2.2 percent in August.
This was the lowest inflation reading since April 2021, and lower than economists’ expectations in a Reuters poll of 1.9 percent.
The data reinforced bets on the Bank of England cutting interest rates next month, and increased the possibility of further cuts in December.
The euro rose 0.4 percent against the British pound to 83.63 pence.
Regarding the United States, traders expect 97 percent of an interest rate cut by 25 basis points when the US Federal Reserve makes a monetary policy decision on November 7, with a probability of about three percent that no change will occur, according to data from the London Stock Exchange Group.
The dollar rose 0.3 percent against the Japanese currency to 149.605 yen, which is not far from the highest level recorded on Monday at 149.98 yen, which was the strongest since August 1.
The Australian and New Zealand dollars fell on Wednesday, with growing doubts about the stimulus it will provide ChinaThe largest trading partner of the two countries.
The Australian dollar fell to $0.6663, the lowest level since September 12, and in the latest trading reached $0.6664, a decrease of 0.6 percent.
The New Zealand dollar fell to $0.6041, a level last recorded on August 19, and in one trade it fell 0.3 percent to $0.6062.
